The new cap, effective from 2004 onwards, will limit expenditure on players’ wages to £150,000 ($242,600/EUR211,320) for National League One clubs and £100,000 ($161,730/EUR140,880) for National League Two clubs.
In addition, clubs are also limited to spending only 50 per cent of their income on wages although special provisions do exist for clubs to make applications to the Rugby Football League (RFL) for exemptions on either threshold providing a proper business case can be made.
Said RFL financial director, Nigel Wood: "While it is clear that excess spending amongst National League clubs is not quite the problem that it was some years ago, there was still a unanimous view that clubs must be regulated and disciplined to live within their means.
"The proposed salary cap regulations are quite complex but, hopefully, they will regulate excess spending and reward those clubs who succeed in developing their businesses on a holistic basis."
The penalties for breaching the regulations agreed by the National League clubs include such potential punishments as point deductions, automatic relegation or the denial of promotion and fines.
